Daily chart
As expected, USD/CHF during Monday's session attempted violating the minimum reached during the previous session, but nevertheless it was unsuccessful to 4 pips to achieve, so the 0.9033 resistance line which houses 2/8 (red line) remains intact and the possibility of a bounce to the upside remains in effect.
In the coming hours it will be announced about the level of diffusion index based on the survey of purchasing managers and expected expansion of the industry in which to be 55.9 and should strengthen the Swiss franc. However, the technical indicator of Murray lines shows a rebound is likely to happen at these levels.
H4 chart
The 4-hour chart shows an area of consolidation in the last 40 hours of trading after the September 27 it last had reached a low of 0.9020, which has not yet been overcome. At this time USDCHF trades at its daily pivot located at 0.9046 and finding that level at the center line of the trend channel showing a possible reversal to the upside. Besides, the stochastic also shows bullish signals, so we can expect to exceed last peak at 0.9068 and the R-1 logically is giving us a clearer signal of the start of an uptrend.
H1 chart
Finally, the 1-hour chart allows us to see a likely flow to an area of purchase of USD/CHF as it trades at this time very close to the 200-period moving average and oscillator strength shows a clear decrease in the strength selling that can initiate a new trend from 0.9060 and 0.9070 area. This would be confirmed if the price manages to stand above its weekly pivot at 0.9071.
Our recommendation: Based on the analysis, our recommendation for Tuesday is:
Long-term Buy above 0.9071 with the first target at 0.9200, with a stop loss at 0.9010
If you have any questions or suggestions, please contact me right through:
Email: antonio.inga@analytics.instaforex.com
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